Which is The Most Secure Cryptocurrency Trading Platform for Beginner Traders?

You can also convert your holdings from one cryptocurrency to another at the going rates. Trading platforms vary from each other by a great degree in terms of complexity, features, digital currencies supported on the platform, and other factors. But, the most important factor to consider when choosing a cryptocurrency trading platform is the security.

Importance of Security for Cryptocurrency Trading Platforms

Cryptocurrency exchanges hold massive pools of various types of currencies. This makes them a good target for hackers. If they manage to find a way in, they can go home carrying hundreds of millions of dollars’ worth of cryptocurrencies.

In fact, it has happened before. Mt. Gox, BTC-e, and DAO (not an exchange) are some of the most popular organizations that were hacked by smart hackers, who got away with a horrifying amount of cryptocurrencies.

Naturally, any cryptocurrency trader would want to make sure that the trading platform that they are using is not susceptible to similar security flaws as those that were hacked. That’s why we are here to help you pick your first cryptocurrency trading platform.

Things to Consider When Analyzing the Security of a Trading Platform

Ask any software security expert and they will tell you how complex and difficult it is to create a highly secure system. Even when corporations pour in massive amounts of money to create a powerful security system, it is humanly impossible to ensure that there are absolutely no flaws in the system.

This is true for cryptocurrency trading platforms too. Therefore, they keep their systems secure by employing a variety of security features that are proven to be highly secure.

To ensure maximum security, these businesses do not share their security protocols, security features, and practices with anyone, making it tougher for the hackers to invade into their systems.

So, we have to resort to other ways to evaluate how secure a cryptocurrency trading platform really is. Here are some things that are useful in that direction.

Identity Verification. When you are creating your account on any cryptocurrency trading platform, you will be asked to share a variety of information about yourself. In general, the more information you are prompted to share, the more secure is the trading platform. Most trading agencies will ask for identification verification, which you can prove using your driver’s license, a passport, or some other government-approved identification. It is important that you do not try and skirt this step by giving them a fake identification, because if your account faces any problem tomorrow, then you might need to prove your identity. So, giving them fake identification or someone else’s identification is strongly advised against.

Reputation. All trading platforms face their challenges. They have their ups and downs. But, the trading platforms which earn the highest trust of their users are those that offer the best customer experience. That includes a near airtight security and safety of their account, fantastic customer support, and a keen interest in the satisfaction of their users. So, the best trading platforms have an outstanding reputation. If they are good at everything else, then it is likely that they have an excellent security system in place too.

The IT Talent. LinkedIn can be a great resource for anyone who knows how to use it. It can provide useful in understanding how good the IT security infrastructure in a trading platform is. Just check out the trading platform’s employee list, specifically the IT team. If you can find the security experts in the team, go through their qualifications, past experience, and the projects they have handled. That should give you a very good idea about their capabilities.

There are many more methods of analyzing the IT security infrastructure of a trading platform, and they all offer varying amounts of information and insights.

List of Most Secure and popular Platforms

After analyzing the various services, we have shortlisted the top trading platforms, and brought them to you. Here it is:

eToro

eToro is a self-styled social trading and multi-asset brokerage firm. It is based in Israel, but its international offices are spread across the UK and Cyprus. It operates on a global level, so anyone can register and use it from pretty much anywhere, irrespective of which country they belong to.

eToro

Newbies will find eToro to be a remarkably easy to use platform. It allows the users to view the trade moves of the best performing members on its network. And, that’s just the trailer. The users can also follow those traders, and…guess what…copy their actions! Isn’t that amazing? This way, beginners don’t have to learn cryptocurrency trading the hard way, by losing their money and learning from it.

Instead, they can keep following the actions of the best performing traders, understanding why those decisions are working, and learn in the process. This is pure gold for the newbies.

Kraken

Once you have gotten the basic understanding of cryptocurrency trading and wish to take it up on a more serious or professional level, you start using Kraken. It is important to note that Kraken has an infamously unintuitive interface.

Kraken

So, unless you are familiar with the cryptocurrency trading, you will not be able to navigate or use it.Kraken is the biggest cryptocurrency trading platform. It has an impeccable track record as the most secure platform. However, its customer support and performance has taken a hit over the past year.

This is, in part, thanks to the repeated DDoS attacks to which the hackers are resorting, since nothing else has worked for them. Although there is a dip in its performance, these kind of attacks solidify the Kraken’s reputation as the most secure cryptocurrency trading platform in the world.

It isn’t a joke that it is the world’s largest bitcoin trading platform.

IQ Option

IQ Option supports a variety of traditional financial instruments and cryptocurrencies. It is also a highly secure and safe platform to use. Its office is located in Cyprus in Europe and its operations are subject to the regulations of the country’s regulator. It is compliant with Cyprus’s regulations, which makes it a safe partner for the users.

IQ Option

The best thing about this platform is that it offers a great number of useful features, including data analyses. It presents the various reports in easily understandable charts.

The platform supports up to 12 cryptocurrencies. The highlight of the platform is that it offers two different types of accounts – one for the beginners or casual traders, and the other for high volume traders. All of these features make it a great trading platform for beginners in the cryptocurrency world.

Cex.io

Cex.io is a highly user-friendly cryptocurrency trading platform. It offers a highly intuitive interface and the users can customize their dashboards to suit their preferences. Cex.iooffers the beginners an easy way to buy cryptocurrencies with their fiat money and vice versa.

Cex.io

They can easily trade between cryptocurrencies. People from anywhere in the world can open an account on Cex.io, and the good thing about it is that it supports margin trading.

Cex.io has an excellent reputation and provides a greater degree of flexibility for users by providing mobile support, credit card payments, and so on. A characteristic thing about Cex.io is that it has a painfully long identity verification process, which is a good thing because it will keep anyone else from getting access to your account using your details.

Poloniex

Poloniex has an outstanding reputation for its security features and that’s no coincidence. They take their IT security very, very seriously. Their offline cold storage facility for deposits is cherished by its users. Poloniex stores only a part of its cryptocurrencies online for the sake of trading.

Poloniex

So, any hackers, even if they manage to find their way through its security, will not be able to lay their hands upon the bulk of the cryptocurrencies that are stashed with Poloniex. Plus, they have people monitoring their website 24*7 and any unusual activity is instantly shut down by them. This makes for a safe environment for everyone.

The advanced users love Poloniex for the rich analysis and tools that it offers the traders. These features are enough to make Poloniex a darling of every serious cryptocurrency trader. But, the highlight of this platform is that it offers highly competitive transaction fee of less than 0.30%.

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